Salud y enfermedad: Bovarysme y tuberculosis

Research Objective 4: Are there differences in the factors and characteristics of first time homeowner using housing financing and non-first time homeowners using housing loan financing?

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Table 4.9 presents the results of the logit analysis for differentiating the two categories of

homeowners using housing financing: First time homeowners versus Non-first time homeowners.

The computed Pseudo R2 is 0.24, suggesting that 24% of the likelihood can be explained by the

model. The chi-squared test is 66.38 with the degree of freedom of 13, and showed that there is an evidence to reject hypothesis of no explanatory power.

Table 4.9 Estimated Logit Results of First Time Homeowners

Number of observation = 251 Log Likelihood function= -105.9997 Restricted likelihood function= -139.1908 McFadden Pseudo R-squared= 0.23845802 Chi Squared= 66.38231

Degree of freedom= 13

Prob[ChiSqd> value]= 0.0000000 Percentage of Right Prediction= 80.876%

Variables Coefficient Standard

Error T-statistics P-value

Marginal Effects

Gender 0.73282 ** 0.34856 2.10 0.0355 0.11571

Young age 0.33810 0.40271 0.84 0.4011 0.05170

Marital status: Single 0.10528 0.61769 0.17 0.8647 0.01521

Education attainment: Bachelor 0.72653 ** 0.36131 2.01 0.0443 0.11386

Occupation: Middle professional -0.79085 ** 0.37222 -2.13 0.0336 -0.12555

Household status: Couple with children -0.37407 0.53994 -0.69 0.4884 -0.05517

Size of household: Three -0.40900 0.58625 -0.70 0.4854 -0.05946

No. of dependents: Less than two -0.51850 0.52585 -0.99 0.3241 -0.07759

High Price of house -1.43601 *** 0.37438 -3.84 0.0001 -0.21762

Annual household income: Low range 0.22230 0.55811 0.40 0.6904 0.03106

Turndown housing loan 1.68817 ** 0.68348 2.47 0.0135 0.16780

Received help for loan payment 0.15301 0.12995 1.18 0.2390 0.02250

Other loans: Vehicle loan -0.15534 *** 0.05164 -3.01 0.0026 -0.02284

Credit card ownership 0.31721 0.47072 0.67 0.5004 0.05018

** denotes statistically significant at the 0.05 level of significance *** denotes statistically significant at the 0.01 level of significance

The estimated coefficients of gender, educational attainment, occupation, high price of house,

turndown a housing loan and other loans are statistically significant the 5% level and have the correct hypothesized signs. The model successfully distinguishes between first time homeowners

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using housing financing and non-first time homeowners using housing financing. The results show

a total of 251 financed homeowners, where 75.7% of them are first time homeowners and 24.3%

are non first time homeowners. For the first time homeowners who financed their homeownership,

most of them are males and have a bachelor degree. Previous records of turndown a housing loan is also is positively related to the first time homeowners; however, a relative high level of

occupation and high price of a house are negatively related to the first time homeowners who

access their homeownership through housing loans. Meanwhile, other loans is negatively related

to the first time homeowners; hence, it indicates that first time homeowners, who are currently

users of housing loans, are less likely to have other types of loans at the same time.

Other explanatory variable such as young age, single, a couple with children, size of household of three, less than two dependents in a family, low level of annual household income, received help

for loan payment and credit card ownership are statistically insignificant at 5% level of

significance and have the correct hypothesized signs. The possible explanation could be that first

time homeowners were almost from the young age group, and they funded their house purchase

through parental supports and personal savings, because young age homeowners earned a relative low income, they cannot afford to purchase houses alone. In China, the structure of household is

unique and simple; there is only one child in a family. Hence, the number of dependents or

children cannot be a factor affecting the decision of purchasing houses for first time homeowner in

China. Most Chinese people are reluctant to have debts; therefore, most credit card holders would

like to pay off their debts immediately. Meanwhile, the use of credit card in China is not well developed as most of developed countries, so the ownership of the credit card can not affect the

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decision of purchasing houses for the first time homeowners. In summary, Hypotheses 21 are

summarized in the following table.

Table 4.9.1 Test Results of Hypothesis 21

Hypothesis Support Not

Support Gender has a positive effect on the decision to purchase a house for first time

home owners

√

Young age has a positive effect on the decision to purchase a house for first time home owners

√

Marital status has a positive effect on the decision to purchase a house for first time home owners

√

Education attainment has a positive effect on the decision to purchase a house for first time home owners

√

Occupation has a negative effect on the decision to purchase a house for first time home owners

√

Household status has a negative effect on the decision to purchase a house for first time home owners

√

No. of dependents has a negative effect on the decision to purchase a house for first time home owners

√

High Price of house has a negative effect on the decision to purchase a house for first home owners

√

Annual household income has a positive effect on the decision to purchase a house for first time home owners

√

Turndown housing loan has a positive effect on the decision to purchase a house for first time home owners

√

Received help for loan payment has a positive effect on the decision to purchase a house for first time home owners

√

Other loans has a negative effect on the decision to purchase a house for first time home owners

√

Credit card ownership has a positive effect on the decision to purchase a house for first time home owners

√